Pat Murphy will probably say he was well within his rights to clear the gallery at tonight’s Public Hearing on House File 807, the bill to repeal the deduction of Federal Income Tax from Iowa Income Tax.
But he was so wrong.
The galleries were filled with people who opposed the bill.Â It is interesting that Democrats could not raise up any more than a handful of speakers to support the bill, none to sit in the gallery who support the bill.Â And those who spoke in favor were the expected litany of social services and union leaders who would either benefit directly from the bill or are beholden to Democrats.Â One speaker in favor, it was observed, sounded distinctly as if he did not even believe what he was saying.
It’s intriguing to see people mischaracterize the events in the House this evening.Â I was there.Â The very first speaker was roundly booed, and I’ll admit that was inappropriate.Â The public was warned.Â After that, no other speaker in favor of the bill received much more than a low murmur of opposition, and that was not worth talking about.
The galleries were full of people who could not contain, however, their enthusiasm and support for the comments of those who actually made sense, spoke for Iowans and opposed the bill.Â What Pat Murphy (who by the way was not visible in the chamber except when he threw the public out) was facing was an uprising of Iowans who have finally had it with the continued outrageous spending and tax increases being sugar coated as a tax reduction.
Ed Failor Jr., President of Iowans For Tax Relief, was one of many who hit the target on this issue: it will tell our graduating college seniors that there is no room for them or their dreams.Â This bill will impact them coming out of school into the work force (those making under $40,000 will be negatively impacted) and will impact their dreams to be successful.Â They will be a target.
Many small business owners got up to speak in opposition to the bill.Â We already know that small businesses, who employ the majority of Iowans, are at significant risk in the current economy.Â And this bill will most dramatically impact their tax burden.Â They will pay more.Â Several speakers had taken the time to ask their tax preparers to calculate the impact of the bill on their taxes.Â One man explained that he would see a 50% increase in his State tax obligation.
Others spoke very eloquently about the absurdity of the bill.Â I think there were perhaps 5 or 6 who spoke in favor, and 40 or so against it.
The straw that broke Murphy’s back was the applause after college student Greg Baker spoke.Â Â Busloads of students from Ames and Iowa City came.Â It was encouraging to so many students there who share our conservative values.Â I just hope they don’t all decide to move out of state after this session is over.
And once the crowd found out they were being ejected, essentially turning the “public” hearing into a private one, that’s when the shouting and anger showed.Â People were escorted out, and still in an orderly fashion, but not without getting a few messages in.Â The one that rings the loudest is:
“This is the people’s house, but not any longer!”
A later speaker, Ted Morgan, said:
“I’ve never been in a house where the tenants evicted the landlords.”
Republican Party of Iowa Chairman Matt Strawn put it well:
“Never have I seen such a gross display of arrogance and disdain for Iowa taxpayers.Â The Iowa House is supposed to serve as the people’s house, the house where great ideas are debated and discussed.”
Earlier in the day, Rep. Paul Shomshor, D-Council Bluffs and chairman of the House Ways and Means Committee, was quoted as saying:
“We think eliminating federal deductibility is helpful for families and middle-class taxpayers,” said Rep. Paul Shomshor, D-Council Bluffs and chairman of the House Ways and Means Committee.
I don’t know how an intelligent person can get away with making a statement like that.Â Either arrogant or stupid, either way it seems obvious Iowa has made a huge mistake electing Democrats into office.
Iowans are starting to see the truth; Murphy may have single-handedly lit a fire he won’t be able to contain.
Update:Â Repeal of Federal Deductibility is tax increase in every tax bracket!
Yesterdayâ€™s newsletter addressed the Democrat proposal to eliminate federal deductibility; a tool that allows Iowans to deduct our federal income taxes from our ordinary income prior to calculating our income for state taxes.Â Â This is the largest, and in some cases the only, tax deduction available to many hardworking Iowans.Â
Last night the House Ways & Means Committee passed out the proposal on a party line vote.Â 14 Democrats voted aye â€“ 11 Republicans voted no.Â Â House File 807 is the new bill number as the bill moves forward and becomes eligible for debate in the House.
After having additional time to study the proposal, we have discovered exactly what we expected: more Iowans than originally stated are going to see a tax increase.Â It is disheartening to hear this explained to Iowaâ€™s taxpayers as a tax cut for two-thirds of Iowans.Â The facts tell us– it is not.Â Â
Under the Democratsâ€™ proposal, 50.9 percent of Iowans will either see no change in their tax liability or see a tax increase in 2009.Â 40% of the individuals receiving a tax increase make less than $40,000 per year.Â 69% of the individuals receiving a tax increase make less than $70,000 per year.Â See the breakdown of HF 807 at http://iowahouserepublicans.com/wp-content/uploads/09-feddeductibility-finalversion.pdf.
And believe it or not, over 10% of the individuals receiving a tax decrease in 2009 make over $100,000 per year.Â Based on the discussion last night in committee it appears to be hit or miss as to who the real winners and losers are.
Additionally, the Democrats have failed to inform Iowans about the implications of their proposal in 2011.Â Â On December 31, 2010, the federal tax relief of 2001 and 2003 will expire. It appears now that Iowansâ€™ federal income tax liability will increase by $160 â€“ $180 million.Â This means that youâ€™ll lose the ability to deduct your federal taxes less than two years before your federal taxes are set to dramatically increase.
Finally, the Democratsâ€™ proposal has the potential to put Iowa small businesses in an even deeper hole.Â Because many Iowa small businesses are structured as individual tax payers they too will see their taxes increase.Â Â The way many of these businesses will try to absorb this cost is by eliminating jobs or by passing the added expense onto the consumer.Â Â Either way, our struggling economy will continue to suffer under this plan.Â Â
Make no mistake this bill is a tax increase on Iowans in all tax brackets from day one.Â And within a few years it will result in a huge tax increase for almost every single Iowan.
When this bill is considered by the legislature, House Republicans will fight on behalf of all taxpayers and their ability to keep more of their hard earned dollars.
PUBLIC HEARING: Tuesday, March 31, 2009
Location: House of Representatives Chamber, Capitol Building, Des Moines
Time: 7:30 pm-9:30 pm tonight.Â (Rally at 6:30 in the Cafeteria)
If you can attend the public hearing at the State Capitol on Tuesday at please join us.
EMAIL AND PHONE CALLS
If you are not able to make it but still want to make a difference please call and email your elected officials today.
House Switchboard: (515) 281-3221
Senate Switchboard: (515) 281-3371
Email Lookup: http://www.legis.state.ia.us/aspx/Legislators/LegislatorInfo.aspx
LISTEN TO THE HEARING ONLINE
You can listen to the public debate online Tuesday night through this website http://www.legis.state.ia.us/Audio/Audio.html and click on house audio.
A new message from Matt Strawn, Republican Party of Iowa:
DEMOCRATS PLAN TO ELIMINATE FEDERAL DEDUCTIBILITY AND RAISE TAXES ON IOWANS!
ACTION ITEM:Â Join US for a Republican Rally at the State Capitol tomorrow night.
Just when you thought things could not get worse at the Democrat-controlled Statehouse, majority Democrats have hatched a plan to raise income taxes on tens of thousands of Iowans by eliminating your right to deduct federal income taxes on your Iowa income tax return.
What Democrats call â€œtax reformâ€ we see for what it is:Â a blatant attempt to use Iowaâ€™s tax code to play destructive class warfare games and redistribute the wealth.Â Their plan would result in big tax increases on the very people on which we are depending to get this state out of our economic slump.
And, for the first time in Iowa history, you would be forced to pay state income tax on money you use to pay your federal income tax.Â A tax on a tax is wrong and Iowa Republicans MUST stand together and defeat this job-killing legislation.
Here are TWO big ways you can help stop this bill:
- ATTEND the Republican Rally at the State Capitol today.Â Â On Tuesday, March 31, at 7:30 p.m. there will be a public hearing on the proposed bill to eliminate federal deductibility.Â We want to pack the House Chamber with hundreds of Republicans to oppose this terrible legislation.
Republicans are encouraged to gather in the basement of the State Capitol at 6:30 p.m. on Tuesday night to hear from opposition leaders and learn how you can make a difference.Â We will then march up to the House Chamber and fill the seats.Â If you are able to attend, please send an email to Eric Johansen, our Political Director, at [email protected].
- Call your State Representative and State Senator, ASAP.Â Let your legislators know you strongly support keeping federal deductibility and OPPOSE raising taxes on Iowaâ€™s job creators.Â Here are the numbers for the House and Senate:
Iowa House of Representatives:Â 515.281.3221
Iowa Senate:Â 515.281.3371
Donâ€™t know your state legislators?Â Click here and use this tool to find out who represents you.
Want to see the actual bill?Â Click here to see the actual legislation.
This legislation could be the defining moment of the 2009 General Assembly.Â The state checkbook is empty, the savings are nearly gone, the credit card is getting ready for action, and now Democrats are getting ready to stick-up taxpayers for even more.Â Enough is enough.
You donâ€™t have to wait until November 2010 to start making a difference.Â You donâ€™t have to wait to make your voice heard.Â JOIN us at the State Capitol tomorrow, call your legislators, and SHARE this information with other Iowa Republicans.
We can still win this battle.Â Â ACT NOW!
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The Conservative Reader will be at the Rally and Hearing… look for udpates on Art Smith’s Twitter, and a wrapup here after the hearing!
The deductibility of Federal Income Tax on the Iowa Income Tax is in jeopardy.Â Iowa Democrats have officially brought the issue to the table in the Iowa House in HSB 284 (currently in the Ways and Means Committee).Â Iowans need to stand up against this bill, as it is a direct increase in the income tax obligation of Iowans.Â After rejecting sound recommendations from Iowans and elected Republicans, the Democrats are anxious to fix the mess they have created by raising our taxes.
There will be a Public Hearing on Tuesday, March 31, 6:30 PM (meeting commences at 7:30) at the Iowa Statehouse in the House Chambers.Â This is the public’s best opportunity to be heard.Â If you can, please plan to attend.Â If you don’t want to see your taxes raised, now is the time to act.Â Attend the hearing.Â Contact your contact your State House Representative and Senator.Â Doing nothing will allow this to proceed.
Matt Strawn, Chairman of the Republican Party of Iowa, had comments on this in the past few days:
Democrats release Plan to Eliminate Federal Deductibility to Force YOU to Pay a Tax on a Tax: Elimination of Federal Deductibility looks like it is on the Democratsâ€™ â€œMust Doâ€ List before Session Ends. This could be Death Blow to our Economy!
It is becoming increasingly clear that legislative Democrats plan to raise income taxes on thousands of Iowans before they leave town and they will do so by eliminating your right to deduct federal income tax payments on your Iowa income tax return.
Brace yourself, but elimination of federal deductibility would mean a huge tax increase on the very Iowans who start businesses and create jobsâ€”the people on whom our stateâ€™s future economic recovery rests. This tax increase would spell utter disaster for Iowa taxpayers and cripple the Iowa economy.
For years some people have talked about getting rid of federal deductibility and lowering income tax rates to make the whole works revenue neutral for ALL taxpayers. But this is NOT what the Democrat tax and spenders at the State Capitol are planning. No. Instead, legislative Democrats are going to play class warfare and punish those Iowans who have the audacity to succeed.
A few weeks back Senate Democrat leaders first suggested elimination of federal deductibility was on the table for serious consideration. This week that sentiment was echoed by House Speaker Pat Murphy (see the story â€œIn the Newsâ€ below). And, yesterday, Democrats released details of their plan to eliminate federal deductibility and raise income taxes on nearly 90,000 Iowa households.
Iowa Democrats should be ashamed. In the face of the challenges presented by this economic upheaval, how have they responded? Well, theyâ€™ve cleaned out the check book (the general fund is out of money). Theyâ€™ve emptied the savings account (the reserve funds are being run dry). They are planning to max out the charge cards (see the Governorâ€™s plan to borrow three quarters of a billion dollars). Now, they want to mug thousands of Iowa taxpayers to feed their spending habits.
Folks, this looks very real to me and we had better be prepared to act. Please watch in the next week as the Republican Party of Iowa prepares to do battle on this critical issue. We will bring to you multiple opportunities to engage on this issue and I trust Iowa Republicans will respond to our call to arms to prevent this destructive tax increase.
People, we cannot let the Democrats tear our financial house to shreds!Â Show up!